Prices may firm on lower supply in spot market

摘要

Prices may be starting to rise above recent lows on the reduction of supply caused by unsettled gas prices in Ukraine and the likely start up of a urea plant in Iran, against a background of steady demand. Ammonia production in Ukraine may stop if the price of gas feedstock increases by around 13% this week as some expect. Several producers, including Gorlovka and OPZ, are said to be preparing to shut down immediately if prices rise. Only three vessels had been confirmed by Thursday to load at Yuzhnyy in July and there was insufficient ammonia in the port's tanks for all three to sail on schedule.